South Karelia welfare area faces challenges in achieving budget savings without jeopardizing healthcare services

The South Karelia welfare area faces significant challenges in achieving necessary budget savings within the required timeframe without jeopardizing patients’ statutory healthcare services. While the area can make the required savings, it will need an additional two years to do so. This conclusion emerges from a financial assessment commissioned by the South Karelia welfare area to determine whether budget balancing measures can be implemented without endangering essential services. The report highlights that welfare areas generally struggle to achieve mandated savings without violating legal regulations.

This year, South Karelia’s welfare area has saved approximately €11 million, but the legally mandated savings target amounts to €128 million over three years. Financial management is expected to be real-time and forward-looking; however, the statutory service levels have not been clearly defined, leading to monitoring that occurs only retrospectively. This situation poses a significant risk of degrading services without a comprehensive understanding of the consequences. According to Sally Leskinen, the director of the South Karelia welfare area, responsible operational changes have not succeeded within the required timeframe.

The welfare areas began their operations with budget deficits, which must be addressed by the end of 2026 per legal requirements. The financial analysis identifies four options for South Karelia to meet its targets. Leskinen supports a strategy involving changes and adjustments totaling approximately €50 million by the end of 2026, which is expected to yield greater benefits in the following years. Financial calculations suggest that the deficits from the initial operational years could be covered by the end of 2028 without additional funding. This plan is not anticipated to have significant impacts on staffing levels, primarily adjusting roles. In October, the regional council must select one of the four options for upcoming financial planning.